Two Pole Smoothed Ehlers Oscillator

Great for trend trading on longer timeframes, a visual indicator of turning points.

The Two Pole Super Smoother Indicator is a great way to evaluate the trend, and a good alternative to the regular moving average. But it can hardly be used to find the turning points of the major cycles.

The oscillator accurately finds most of the cycle’s turning points, while the additional smoothing removed the residual noise.

In order to remove the residual noise from the oscillator, I used Ehlers’ Instantaneous trendline filter, because this filter shows a great noise reduction capacity while keeping the additional lag really low.

Because all the Maths have been modified in order to be based on the Open prices, the indicator won’t retrace.

Lag:

Please note that the original Two pole Super Smoother indicator presents a small lag proportional to it’s Cutoff Period. Because the version on this page has been modified to be based on the Open price (in order to avoid retracements), one bar of lag is added.

Finally, the Instantaneous trendline filter is adding a little lag too, which should not be of more than 2 bars.

As a result, you should not use this indicator in order to catch cycles with a period of less than 10 bars.

If you want to catch 5 bars cycles on H1 for example, you can use this indicator on the M1 or M5 timeframe, using a large cutoff period. The additional data available on small timeframes allows you to trade short cycles.

On this screenshot, you can see how the oscillator finds the turning point of most cycles.

MT4 Indicators – Download Instructions

Two Pole Smoothed Ehlers Oscillator is a Metatrader 4 (MT4) indicator and the essence of the forex indicator is to transform the accumulated history data.
Two Pole Smoothed Ehlers Oscillator provides for an opportunity to detect various peculiarities and patterns in price dynamics which are invisible to the naked eye.

Based on this information, traders can assume further price movement and adjust their strategy accordingly.

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MT4Indicators.com is the library to the thousands of indicators for MetaTrader 4 developed in MQL4. Regardless of the market (forex, securities or commodity market), indicators help to represent quotes in an accessible form for easy perception.